Financial services conglomerate Edelweiss Group on Wednesday announced that US-based investment firm Kora Management will invest up to USD 125 million (Rs 875 crore) in it.
Kora Management, an investment firm focused on financial and technology sectors across emerging markets, and an existing long-term investor in Edelweiss, has committed to invest USD 75 million (Rs 525 crore) in the advisory business, Edelweiss Global Investment Advisors (EGIA) subject to structuring-related milestones, according to a company release.
The proposed investment in the business is subject to customary regulatory approvals, it added.
EGIA includes the businesses of asset reconstruction, wealth and asset management and institutional client group, together contributing to nearly 50 per cent of the group's profit.
Kora also plans to make a further investment of USD 50 million (Rs 350 crore) in Edelweiss, the timing and structuring of which is being finalised, the release said.
Rashesh Shah, chairman and chief executive officer, Edelweiss Group said, "Our customers will benefit immensely from Kora's acumen in technology and financial services across emerging markets, and their investment will help us scale our businesses in a competitive market environment."
Kora's founder and Chief Investment Officer Nitin Saigal said, "Over the years, the Group has successfully built a diversified financial services franchise in India, with multiple scalable platforms. Today, EGIA is well-positioned in asset and wealth management and distressed debt, two exciting sub-segments in Indian financial services, with the potential to grow multi-fold in the years to come."
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